Head-To-Head Comparison: Chunghwa Telecom (NYSE:CHT) vs. LICT (OTCMKTS:LICT)

Chunghwa Telecom (NYSE:CHT) and LICT (OTCMKTS:LICT) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Institutional & Insider Ownership

2.1% of Chunghwa Telecom shares are held by institutional investors. 1.0% of Chunghwa Telecom shares are held by insiders. Comparatively, 26.1% of LICT shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Chunghwa Telecom has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, LICT has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500.

Profitability

This table compares Chunghwa Telecom and LICT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chunghwa Telecom	16.29%	9.63%	7.13%
LICT	16.61%	N/A	N/A

Valuation and Earnings

This table compares Chunghwa Telecom and LICT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chunghwa Telecom	$7.16 billion	4.81	$1.13 billion	$1.49	29.83
LICT	$134.24 million	N/A	$23.32 million	$970.00	12.37

Chunghwa Telecom has higher revenue and earnings than LICT. LICT is trading at a lower price-to-earnings ratio than Chunghwa Telecom, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Chunghwa Telecom and LICT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chunghwa Telecom	0	1	0	0	2.00
LICT	0	0	0	0	0.00

Summary

Chunghwa Telecom beats LICT on 7 of the 11 factors compared between the two stocks.

About Chunghwa Telecom

Chunghwa Telecom Co., Ltd., together with its subsidiaries, provides telecommunication services in Taiwan and internationally. It operates through Consumer Business, Enterprise Business, International Business, and Others segments. The company offers local, domestic long distance, and international long distance fixed-line telephone services; mobile services such as prepaid and postpaid plans; broadband plans; and internet and data services. Chunghwa Telecom Co., Ltd. was incorporated in 1996 and is headquartered in Taipei City, Taiwan.

About LICT

LICT Corporation, together with its subsidiaries, provides broadband, voice, and video services to residential, commercial, and governmental customers. The company offers high speed broadband services, including internet access through copper-based digital subscriber lines, fiber optic facilities, fixed wireless, and cable modems; video services through traditional cable television services and internet protocol television services; voice over internet protocol services; wireless voice communications services; and other telecommunications related services. It operates in California, Iowa, Kansas, Michigan, New Mexico, Utah, and Wisconsin. The company was formerly known as Lynch Interactive Corporation and changed its name to LICT Corporation in March 2007. LICT Corporation was incorporated in 1996 and is based in Rye, New York.